In addition to professional liability insurance, self-employed workers should consider general liability insurance. A general liability policy covers property damage or bodily injury to another person. When you work as an employee, your employer's commercial property insurance protects real estate and company property, such as computers, equipment and furniture, from losses caused by fires, break-ins, and other unexpected events. Ultimately, you may need to consider a commercial property insurance policy, depending on the number of expensive tools and equipment you use for your business.
Most self-employed people don't have the financial resources to fight a long and costly legal battle, even if the court finds they didn't do anything wrong. Professional liability insurance, also known as error and omission insurance (E&O), can cover costs in the event of a lawsuit. Many contracts with clients, especially for more technical freelance jobs, such as web development or architecture, will require some type of insurance for freelancers, such as general liability insurance or a professional liability insurance policy. Customers will often ask you to present a certificate of liability insurance before doing business with you.
This requirement protects both you and your customer in the event that something goes wrong during the project. On Fiverr, for example, you'll need to have sufficient general liability insurance to cover the most common risks of the type of service you offer. Freelancers who provide a service or earn a living from their experience, even companies from home, will definitely want to consider professional liability insurance. E&O will cover legal costs if a client claims that they suffered a financial loss due to negligence or an error in their work.
This insurance will pay all your legal fees (up to the policy limit) if a customer sues you, regardless of whether you are at fault. For IT freelancers, technological errors and omissions insurance includes E&O coverage with cyber liability insurance, often at a discount. Commercial property insurance covers the cost of repairing or replacing your business property that was damaged in a fire, robbery, or other unexpected event. Even if you work from home, you should consider commercial property insurance.
You'll want to check if and to what extent your landlord or tenant policy covers commercial property. A Business Owners Policy (BOP) combines a general liability insurance policy with commercial property insurance. If you think you'll need both policies for your business, you can usually save money by bundling them together instead of buying the two separately. If you're handling sensitive information, such as customer data, credit card information, or personal information, you should seriously consider cyber liability insurance.
This policy covers your business regardless of the high costs of a data breach on your systems or those of a customer. Professional liability insurance provides coverage for freelancers who are accused of making mistakes that affect their clients' profits. For example, if you're an independent web developer and you've signed a contract stating that your customer's website will be up and running before Black Friday, the customer could sue you if you don't keep that promise. Professional liability coverage would take effect to pay legal fees and any possible payments related to that claim.
In addition to health insurance, you may want to consider liability insurance for your independent business. If you use your personal vehicle for business purposes, such as driving to customer meetings or making deliveries, your personal car insurance may not cover you in the event of an accident. Working as a freelancer and small business owner means that you are responsible for paying for your own health insurance coverage, liability insurance, life insurance, and all other forms of insurance. If you die during that period, the insurer pays your beneficiary (the person you choose to receive the benefit) the life insurance payment.
If you have a serious medical condition (such as heart disease, cancer, kidney disease, or blood pressure problems) or risky hobbies (such as hang gliding, for example), you may need to talk to a licensed insurance agent to help you find a life insurance policy that fits your need. Most people start thinking about life insurance when they start a family or buy a home, but the truth is that it's always a good time to start buying life insurance. Life insurance quotes provided by Bestow Agency LLC, dba Bestow Insurance Services in California, who is the authorized agent. The good news is that, once you have commercial insurance, it will apply to all your contracts in the future.
Secured issuance life insurance is a type of full life insurance policy (a type of permanent life insurance) that does not require any health requirements. If you work with a personal finance counselor, they're likely to bring up the topic of life insurance when you're young, if they think you might need life insurance in the future. A BOP includes three types of basic coverage and is generally a cheaper way to buy business insurance rather than buying these coverages separately. If you still have questions about what types of insurance you should buy or if your independent company really needs coverage, an Insureon agent can provide guidance.
While insurance for independent businesses is often a good option, in some situations it may be required by law. In addition, you may find it incredibly difficult to find work as a freelancer if you don't have any insurance, since most potential clients will request to see an insurance certificate before signing a contract and agreeing to work with you. Whether you travel frequently to meet with customers or drive for a rideshare company, you may need commercial car insurance or a separate rideshare insurance policy. .
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